Kotak Mahindra Bank Q4 Preview: Net interest margin may be under pressure, asset quality might improve

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra Bank, one of India’s leading private sector lenders, is set to release its earnings for the quarter ended March 2024 on Saturday, May 4. According to a CNBC-TV18 poll, the private sector lender is likely to report standalone net interest income of ₹6,670.2 crore for the fourth quarter of FY24, a 9.3% year-over-year increase from ₹6,102.6 crore.

The projected net profit is expected to be ₹3,376.9 crore, a 3.4% decline from the previous year’s ₹3,495.6 crore.

Investors will be keeping a close eye on the growth of deposits, which is expected to grow 17.5% on-year and 4.5% QOQ.

Kotak’s loan growth is seen at 17.2% year-on-year and 4.3% quarter-over-quarter. However, the net interest margin may both year-on-year and sequentially.

It will be crucial for investors to watch the momentum of low-cost deposits, as it has the potential to significantly impact the bank’s earnings.

On a positive note, Kotak Mahindra Bank’s asset quality is expected to improve quarter-over-quarter. The bank’s slippages are expected to be at Q3 levels.

The bank’s management commentary and outlook for the future will also be of significant interest to investors.

On Friday, shares of Kotak Mahindra Bank settled 1.61% lower at ₹1,550.30 apiece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow